Mountain Lake Resources Inc. (TSX-V: MOA) has reported completion of the acquisition of an undivided 100% interest in the Glover Island Property from New Island Resources Inc.
The Glover Island Property is located in western Newfoundland and consists of two mineral licenses and one mining lease, covering a total of 5,100 hectares.
“We now have three large scale gold projects ranging from discovery stage exploration to advanced stage exploration and resource development. Notably, all three projects are located on the island of Newfoundland, one of the best jurisdictions in the world for mining-friendly policy.”
Pursuant to the Property Transfer Agreement announced September 24, 2010, New Island has transferred its interest in the Glover Island property to Mountain Lake for consideration from Mountain Lake consisting of $500,000 cash; 1,000,000 common shares of Mountain Lake; share purchase warrants for the acquisition of up to another 500,000 common shares of Mountain Lake at an exercise price of $1.20 per share for a period of two years; a waiver and release of a loan to New Island of $160,000 plus accrued interest (estimated at $3,420); and a waiver and release of any break fee payable by New Island to Mountain Lake in connection with the termination of a prior arrangement agreement between the parties. Mountain Lake will also pay New Island a net smelter returns royalty of 1% of commercial production, which reduces to 0.5% after the payment of the first $1 million ("NSR"). The NSR is only payable if and when a prior 3% net smelter returns royalty reserved to a third party and capped at a maximum of $3 million has been paid or is otherwise of no further force or effect. All of the securities issued pursuant to this acquisition are subject to a 4 month hold.
"The Glover Island Property is a very significant addition to our project portfolio," stated Mountain Lake President and CEO Gary Woods. "We now have three large scale gold projects ranging from discovery stage exploration to advanced stage exploration and resource development. Notably, all three projects are located on the island of Newfoundland, one of the best jurisdictions in the world for mining-friendly policy."
About the Glover Island Property
The Glover Island Property is a gold exploration property that is situated roughly 70 kilometres (km) from Mountain Lake's Valentine Lake Gold Project, and is host to several significant gold prospects over an 11 km strike length. Significant drill intercepts at Glover Island include 16.7 metres (m) of 5.31 grams per tonne (g/t) gold (Au) at the LPSE prospect, 10 m of 4.93 g/t Au at Kettle Pond South, and 8.0 m of 10.18 g/t Au at the Lucky Smoke deposit. Non-NI 43-101 compliant resources have been calculated at the LPSE and Kettle Pond South prospects, and Mountain Lake believes that these could be upgraded to NI 43-101 disclosure standards, once data verification and quality control measures are completed.
Source: Mountain Lake Resources Inc